Control Mechanisms at General Electric
General Electric is a company that is known for producing products and providing services worldwide. General Electric is the fourth most recognized brand in the world, and has been around for over 125 years. In 2008 General Electric reported revenue of $182,515 million (GE, 2009). This paper focuses on and explains four of the control mechanisms used within General Electric—Six Sigma, Performance Measurement, Internal and External Audits, and Financial Controls.
Six Sigma is a process improvement program developed in the 1980s that identifies ways to improve specific metrics within a business process. Performance measurement uses statistical data to identify progress toward a goal. An internal audit is a company’s own review and assessment of its processes and an external audit uses an outside organization for this purpose. External audits most commonly are used for financial and accounting processes, yet other operations could be reviewed similarly. These control mechanisms complement each other and are coordinated at GE to ensure successful implementation of its processes and development of its products.
GE has done well with establishing the Six Sigma process as part of the company culture. GE trains all its employees in the philosophy and language of Six Sigma (GE, 2009). The company states, “Six Sigma is a highly disciplined process that helps us focus on developing and delivering near-perfect products and services” (GE, 2009).
By using the Six Sigma approach, GE accurately measures what the company’s processes can deliver and their limitations. In this way the company can implement improvements. Six Sigma programs accurately measure a process and evaluate enhancements. This has helped to create a successful program at General Electric.
Customers value consistent, predictable business processes that deliver world-class levels of quality. This is what Six Sigma strives to produce. General Electric's...